SK Hynix Announces $29 Billion Share Buyback, Boosting Stock Prices Across Memory Sector
Shares of SK Hynix (NASDAQ:SKHY) surged nearly 6% after the company announced a record treasury share cancellation worth approximately $28.6 billion—the largest in South Korean history—aimed at boosting shareholder value by repurchasing and canceling up to 3.3% of its outstanding shares over three months. The move lifted sentiment across memory stocks, with SanDisk (NASDAQ:SNDK) rising 5% and Micron Technology (NASDAQ:MU) climbing 3%. The Roundhill Memory ETF (CBOE:DRAM), which is heavily concentrated in Samsung, SK Hynix, and Micron, also rose by nearly 4%, reflecting the sector-wide optimism. This rebound follows a broader debate about how long AI-driven demand for memory will continue to support prices. SK Hynix cited its strong balance sheet—$49 billion in net cash—as enabling this aggressive buyback while simultaneously investing $54 billion into new fabrication plants for DRAM and NAND flash, signaling confidence in both capital returns and future production capacity.
Topics: AI_memory_upcycle memory_stocks treasury_share_cancellation